The Building Societies (Designation of Qualifying Bodies) (No. 3) Order 1993

Meaning of investment and support limit for general insurance bodies

9.—(1) In this Schedule–

“the investment and support limit for general insurance bodies” means–

(a) that the power to invest in a general insurance body may be exercised only to the extent that–

(i) the aggregate shareholding or corresponding membership rights in that body held by the society and the society’s associated bodies and subordinate organisations will not thereby equal or exceed 15 per cent of the equity share capital or, as the case may be, 15 per cent of the corresponding membership rights of that body or otherwise cause the society, or the society and the society’s associated bodies and subordinate organisations in combination, to be a controller of that body, or

(ii) the exercise of the relevant power does not cause the insurance body to become a subsidiary undertaking of the society, and

(b) that the power to support a general insurance body does not include any form of guarantee of that body’s liabilities.

(2) For the purposes of paragraph (a) above, “controller” shall have the meaning which it has in section 7 of the Insurance Companies Act 1982(1) as if such meaning applied to a general insurance body.

(1)

Schedule 8 to the Act was substituted by S.I. 1988/1141 and subsequently amended by S.I. 1989/839 and S.I. 1992/509.